{"id":11051,"date":"2024-03-29T11:31:43","date_gmt":"2024-03-29T18:31:43","guid":{"rendered":"https:\/\/sandiegonewsdesk.com\/?p=11051"},"modified":"2024-03-29T11:31:57","modified_gmt":"2024-03-29T18:31:57","slug":"opinion-power-san-diegos-plan-to-create-a-city-utility-is-too-good-to-be-true","status":"publish","type":"post","link":"https:\/\/sandiegonewsdesk.com\/?p=11051","title":{"rendered":"Opinion: Power San Diego\u2019s Plan to Create a City Utility Is Too Good to Be True"},"content":{"rendered":"

Original Article Link: Opinion: Power San Diego’s Plan to Create a City Utility Is Too Good to Be True – Times of San Diego<\/a><\/p>\n

by\u00a0Jerry Sanders<\/a><\/span>\u00a0and\u00a0Brig<\/a><\/span><\/p>\n

In the era of budget cuts, and unfunded\u00a0critical\u00a0infrastructure projects,\u00a0one might wonder why anyone would be looking to saddle our citizens \u2014 the working families and businesses we represent \u2014 with debt.<\/p>\n

In a new study,\u00a0Concentric Energy Advisors<\/a>\u00a0\u2014 a company that specializes in energy infrastructure valuations \u2014 calculates that\u00a0Power San Diego<\/a>\u2019s proposed initiative which forces a government takeover of the utility grid will result in the City of San Diego incurring $9.3 billion in new debt to acquire the electric infrastructure while losing billions more in revenue.<\/p>\n

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\"Opinion<\/a><\/figure>\n<\/div>\n

The Power San Diego initiative, proposed by two individuals,\u00a0has been making\u00a0promises that\u00a0a\u00a0government takeover\u00a0to create a city owned utility\u00a0can be created at little to no\u00a0direct\u00a0cost to San Diegans and\u00a0will\u00a0result in\u00a0big savings on electric bills.\u00a0As the\u00a0adage\u00a0goes, if something sounds too good to be true, it likely is.<\/p>\n

The plan to acquire the electric grid and create a city owned power company is really no plan at all. The petition being circulated says the people who would run the new utility could be chosen at random \u2014 essentially putting the power grid and backbone of San Diego\u2019s economy in the hands of individuals selected by drawing names out of a hat.<\/p>\n

The five randomly selected people, with no experience running the electric grid of the sixth largest city in the nation, have a year to produce a plan to force the government takeover of the electric grid at any cost they determine necessary, with no oversight and no further public votes.<\/p>\n

Imagine what the city would have to cut from its services and programs if these five political appointees decided to force the seizure of the power grid, adding more than $9 billion of debt on the backs of taxpayers awhile losing property tax and electric franchise revenue of more than $3.9 billion that funds essential city services. That\u2019s almost\u00a0a staggering three times\u00a0the city\u2019s annual budget.\u00a0At a time\u00a0when\u00a0city leaders are making tough decisions regarding funding for road repairs, storm-drain upgrades, staffing, and essential programs like affordable housing,\u00a0we simply can\u2019t afford this costly mistake.<\/p>\n

With\u00a0$13 billion,\u00a0the city could\u00a0build\u00a0thousands of\u00a0housing units, retain, grow and support our current city workforce, improve hundreds of miles of road, and\u00a0eliminate the infrastructure funding deficits\u00a0for\u00a0crucial\u00a0projects including stormwater drainage systems, public safety facilities, and homeless services.<\/p>\n

Importantly, Concentric\u2019s study is the only financial assessment that has been conducted analyzing the existing\u00a0energy infrastructure\u00a0assets, providing San Diegans with the facts\u00a0to inform their decision-making.\u00a0Power San Diego does not want us to know the true cost.<\/p>\n

It\u2019s clear, they are working to bypass an ongoing taxpayer funded city study that will look at the financial effect of a government takeover of the electric grid, by rushing this initiative to the ballot without any financial analysis or consultation with affected businesses and workers. That\u2019s irresponsible \u2014 San Diegans deserve to know the facts before voting on a scheme created by the few, to seize the grid and incur billions of dollars in debt on the backs of all San Diegans.<\/p>\n

A hastily planned measure to create a new government run utility is not the solution to addressing the cost of energy in California and will likely mean higher rates for San Diego working families and businesses.<\/p>\n